CLASS I, VOTE 10-contd.

Chequers Estate-Police Protection.

10. Expenditure of 1241. Os. 8d., incurred for police protection at Chequers during the period 21 November to 31 December 1924, has been charged to a special Subhead GG. by direction of the Treasury. Subsequent expenditure for this purpose will fall upon the Vote for 1925-26, and 1,1501. has been provided in the Estimates for that year.

CLASS I, VOTE 10A.-HOUSE BUILDING.

11. The total expenditure by the Office of Works on House Building Schemes during the five years ended 31 March 1925 was 4,386,2361. 4s. 11d., while the receipts accounted for on the Vote reached 4,384,5251. 11s. 10d. The amounts due from Local Authorities fell during the year from 10,6251. 18s. 7d. to 1,710l. 13s. 1d.

CLASS I, VOTE 10B.-HOUSING SCHEMES.

Purchase of Sites of Temporary Housing Schemes.

12. The purchase of the sites of temporary housing schemes, referred to in paragraph 14 of my last Report, was completed in 1924-25. The total expenditure on purchases during the two years amounted to 122,5701., compared with an estimated cost of 139,6001.

In the purchase agreements in connexion with two sites, comprising approximately 160 and 300 cottages respectively, the sellers retain options to repurchase the sites. In the case of the smaller estate, the option is to repurchase two acres (comprising 40 houses) at the selling price, after seven years, and the remainder after twelve years, while in the other case the late owners may repurchase the estate in portions, subject to certain conditions, at any time before 1943, the price to be settled by arbitration, within a limit of 25 per cent. above or below the original cost of purchase. In both cases the Commissioners of Works are liable to remove the buildings and reinstate the sites on repurchase, so that it will be seen that this liability has merely been deferred by the purchase agreements.

Sales of Permanent Housing Estates.

13. It has been the policy of the Government to sell the houses on these estates as opportunity arose, and numerous individual sales have been effected during the past few years. Important sales of estates as a whole have been completed during 1925, and although they are not reflected in the account in this volume I think it well to take this opportunity to record particulars of the sales.

With the exception of certain individual houses that had previously realized 22,000l., the Well Hall Estate, Woolwich, erected at a cost of 820,000l. under the provisions of the Housing Act, 1914, for the purpose of housing munition workers of the Royal Arsenal, has been sold for the sum of 375,000l. The proceeds of the sales have been

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CLASS I, VOTE 10B-contd.

issued to the National Debt Commissioners in reduction of the annuity payable until 1944 under the Act quoted, and the provision for this annuity under subhead B. of this Vote for 1925-26 is accordingly 21,2001. as compared with 49,370l. in 1923–24.

Provincial estates at Barrow, Coventry, Flookburgh, Irlam, and Lincoln, comprising 1081 houses erected during the war at a cost of approximately 1,190,000l., have been sold as a single transaction for the sum of 300,000l.

Arrears of Rent.

14. As stated in the notes on page 101, arrears of rent amounting to 1,115. 16s. 11d. have been written off, with Treasury authority, as bad debts. The net arrears on the Board's estates at 31 March 1925 were approximately 65,000l., the same figure as at the end of September 1924. Further arrears of 6,9831. were, however, taken over with the Estate at Beachley, Chepstow, which was transferred to the control of the Commissioners of Works at the end of the financial year 1924-25.

CLASS I, VOTE 14.-WORKS AND BUILDINGS IN IRELAND.

Residence for the Governor of Northern Ireland.

15. A payment of 25,000l. is included under subhead A. for the purchase of Hillsborough House and Estate of 1080 acres, for the residence of the Governor of Northern Ireland. From papers that have been referred to me it appears that the house and small park of 110 acres will be handed over to the Government of Northern Ireland on a perpetual trust, reverting to the Imperial Government if, for any reason, the place should cease to be used as the Governor's residence. The fee simple of the remainder, 970 acres, will be transferred to the Government of Northern Ireland, and it appears to be the intention to erect a constabulary depot thereon.

Provision has been made in the Estimates for 1925-26 for the necessary adaptations, decorations, etc., and furniture of the residence, but the cost of future maintenance of the property will be met by the Government of Northern Ireland.

CLASS II, VOTE 2.-HOUSE OF COMMONS.

Subhead M.2-Civil Pay (Arrears).

16. The expenditure charged to this special subhead represents the re-assessment of the civil pay of the staff of the House of Commons who voluntarily enlisted for service with H.M. Forces during the Great War.

The judgment of the House of Lords in the case of Sutton v. Rex, which affected the civil pay of Civil Servants who served with the Forces, and resulted in the Supplementary Vote for Civil Pay (Arrears), Unclassified Services, Vote 11, 1924-25, did not apply to officers of the

CLASS II, VOTE 2-contd.

House of Commons.

The Commissioners of the House of Commons, however, decided that it would be only equitable to grant these officers terms generally similar to those to which Civil Servants became entitled under the judgment.

CLASS II, VOTE 9.-BOARD OF TRADE.

British Dyestuffs Corporation, Ltd.

17. In paragraph 12 of their Report, the Public Accounts Committee of 1923 referred to the investment of 1,700,0017. in the British Dyestuffs Corporation, Ltd., by the Board of Trade in 1919-20.

No dividends on this investment have been received since 1921-22.

As explained in papers recently laid before Parliament (Cmd. 2545), the Treasury have agreed, subject to the observance of certain conditions, to surrender to the Corporation the Government holding, consisting of 850,0011. Preference Shares and 850,000l. Preferred Ordinary Shares, fully paid, return for a sum of 600,000l. This offer has been accepted, subject to approval by the Court of the Company's scheme of reorganization.

British America Nickel Corporation.

18. I referred in paragraph 19 of my Report for the year 1920-21 to a scheme of reorganization of the British America Nickel Corporation under which the First Mortgage Gold Bonds, of which $3,000,000 were held by the British Government, were converted into A Income Bonds, at the same rate of interest, but ranking below $6,000,000 of First Income Bonds created under the scheme. Although the Government lost their priority of security thereby, it was hoped that the reconstruction would be found to have added to the value of the Government holding, by enabling the Corporation to raise further capital and avoid liquidation and a forced sale of the assets.

This hope does not appear to have been realized, and I learn that the Government holding is now expected to prove nearly, if not entirely, a total loss, as a result of the Corporation having been put into liquidation on the petition of an unsecured creditor. I am informed that the Board of Trade propose to seek Treasury sanction to write off the value of the holding when the liquidation is finally completed.

CLASS II, VOTE 14.-MINISTRY OF AGRICULTURE AND FISHERIES.

Land Settlement.

19. Since the date of my last Report the Ministry of Agriculture and Fisheries has issued, as a Stationery Office publication, an informative Report on Land Settlement in England and Wales in the period 1919 to 1924.

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CLASS II, VOTE 14-contd.

From this Report which, it should be noted, deals only with Small Holdings established by Local Authorities and does not cover the Ministry's own Farm Settlements, it would appear that 22,000 men have been settled on the land by Councils since the armistice, at a capital cost estimated to reach 16,000,000l. by 31 March 1926, of which the Public Works Loan Commissioners will have advanced on loan about 15,000,0001. It is probable that the State will at that date have received no (net) return on these loans, since the interest received by the Public Works Loan Commissioners from the Councils will be approximately balanced by the Ministry's disbursements in repayment of the Councils' annual losses on Land Settlement.

Further, it is possible that as a result of the forthcoming valuation one half of the capital expenditure may have, in effect, to be written off, inasmuch as the Ministry may have to bear about one half of the annual · loan charges.

Beet Sugar Subsidy.

20. Subhead L. 1 (a) of this Vote records the first payments of subsidy on sugar and molasses produced in this country from home-grown sugar beet. The payments were made to two companies in respect of the production of three factories, and amounted to 492,0401.

The rules made jointly by the Ministry and the Board of Agriculture, Scotland, (S.R.O. 812/25), under the British Sugar (Subsidy) Act, 1925, were promulgated after the close of the financial year, but the claims on which the payments were made conformed to these rules, which were then in draft.

The rules provide for certificates that subsidy is claimed only on sugar and molasses produced from home-grown beet for which the statutory minimum prices have been or are being paid, for the Ministry to be given access to the books of the manufacturer or refiner, and for a copy of the claim to be handed to the local Officer of Customs and Excise who certifies it, for the Ministry, as to degree of polarization of sugar, or percentage of sweetening matter of molasses, on which the varying rates of subsidy are based.

The Ministry is in close touch with the Customs and Excise Department, and the above safeguards, judged from my present limited experience of these transactions, appear to be adequate.

CLASS II, VOTE 16.-MINISTRY OF TRANSPORT.

Motor Tax Account.

21. I have applied a test examination to the collection of Motor Taxation for 1924-25, the gross receipts of which amounted to 16,480,1471. 12s. 2d. A statement, which includes adjustments in respect of previous years, of the gross and the net receipts and of the payments into the Exchequer, appears on page 19 of the Finance Accounts 1924-25 (H.C.116/25).

CLASS II, VOTE 16-contd.

I have scrutinized the certificates and reports of the Ministry of Health auditors in England and Wales, and of the Ministry's own staff in Scotland, appointed to examine the Motor Tax transactions of Local Authorities, and I am satisfied that the system of assessment and collection is working satisfactorily.

Deficiencies of revenue written off with Treasury sanction amounted to 521. 2s. 1d.

The deficiency arising out of defalcations by a clerk to a Local Authority, referred to in the Second Report of the Public Accounts Committee 1924, and in paragraph 18 of my Report of last year as being still under consideration, had not been finally dealt with when the present account was closed. The Treasury have since sanctioned the write-off of the total loss in this case, viz. 2,274l. 14s. 6d. (less any recovery effected from an Insurance Company or any other source).

In reply to a Treasury inquiry as to the steps that have been taken generally to prevent the recurrence of similar irregularities, the Ministry stated that adequate systems of frequent internal checks have been adopted by the Local Authorities; and further, that arrangements have been made that the audit of the Motor Tax Accounts of Local Authorities shall include a review of these internal checks, and these precautions should prevent, so far as is possible, defalcations on any extensive scale.

CLASS II, VOTE 24.-THE MINT.

Installation of a Costing System.

22. I mentioned in paragraph 19 of my Report last year that accounts on a costing basis were inaugurated at the Royal Mint as from 1 April 1924. I have since been informed that no cost accounts were prepared for the year ended 31 March 1925, as the necessary staff was not appointed until August 1924, and their activities were limited during the remainder of the financial year to the preparation of experimental and test costings. Complete accounts have been maintained since 1 April 1925.

CLASS II, VOTE 25.-NATIONAL DEBT OFFICE.

Certification of non-voted Accounts.

23. I have examined and found to be correct those non-voted accounts administered by the National Debt Commissioners relating to the year 1923-24, which were not covered by my certificate last year, as well as the non-voted accounts administered by the Commissioners relating to either the calendar year 1924 or the financial year 1924-25, with the following exceptions, viz. : The Irish Land Purchase Fund, the Sinking Fund under the Purchase of Land (Ireland) Act, 1891, and the Land Purchase (1891) Accounts, the examination of which is not yet completed, and the accounts of the Local Loans Fund which have not yet been rendered to me.

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